05 Dec EMPIRICAL AND QUANTITATIVE ANALYSIS IN PRODUCTION COST ANALYSIS
Order Instructions
Using the data provided by the instructor, write a report that describes and analyzes the production efficiency of the tech company, Apple, Inc.
A). Introduction: (1 – 2 paragraphs) that provides an overview of Apple, Inc.
Describe Apple in terms of the industry it is part of, for example IT, manufacturing, services, or retail;
Describe the main products and services Apple provides;
Describe the market structure Apple is part of (i.e., pure competition, monopolistic competition, oligopoly, monopoly). Mention a few competitors of Apple and Apple’s current market share.
B). Analysis:
i). Using the data provided, calculate the following values for the five-year period (2014-2018):
Sales: Total revenue (TR)
Cost: Cost per unit (ATC)
Productivity: Output per worker (Q/L)
Profitability: profit per unit [(TR-TC)/Q]
Put your findings in a table.
ii). What trend do you see in the above listed operational effectiveness indicators?
Calculate percentage changes in TR, ATC, output per worker, and profitability. Put your findings in a table.
What do you observe in the percentage changes indicators decreasing, increasing, or constant?
iii). Discussion
How do you explain the trend you found above? Discuss a few reasons that might be responsible for the trends you have discovered.
C). Recommendations
Include any recommendations on how to improve the production process to achieve greater operational effectiveness based on the analysis you did. For example, what advice can you provide to Apple, Inc. managers to increase sales (total revenue), to lower any of their costs of production, increase output per worker, or to increase profitability?
Sources:
https://www.sec.gov/Archives/edgar/data/320193/000032019321000065/aapl-20210626.htm
https://www.sec.gov/Archives/edgar/data/320193/000032019320000096/aapl-20200926.htm
https://investor.apple.com/investor-relations/default.aspx
